Bangladesh can export to 27 countries of European Union without any tax or custom duties.

The Generalised system of Preferences (GSP) is a preferential trade arrangement which gives preferential tariff treatment (i.e reduced or zero import duty) to import from developing countries. It is a unilateral arrangement (i.e granted autonomously by the community, and not reciprocal). It includes the so called Everything but Arms (EBA) arrangement which grants duty and quota free access to all goods excepts arms.

As I was going through a Bangladesh newspaper today, I found that from 1st January 2011, European Union (EU) will start 'one stage GSP rules of origin'. If this rule starts Bangladesh can export ready made garments to the EU countries without any duties.Already 27 members of the EU gave positive views about this rule.

Bangladesh Garments Manufactures and Exporters Association (BGMEA) president Abdus Salam Murshidi said, 'If Bangladesh gets the oppurtunity to export(free of duties) to the EU, then it will have a huge positive impact on the Bangladesh economy'. He also said currently China has the largest market share on the EU among the Asian countries. If Bangladesh gets this oppurtunity then it will be able to compete with the giant exporting countries like China and India.

This is a good news for Bangladesh and hope they can utilise the facility properly and make a step forward towards development.

<http://www.kalerkantho.com/?view=details&type=gold&data=Bank&pub_no=334&cat_id=1&menu_id=13&news_type_id=1&index=4>accessed 6th november.

 <http://ec.europa.eu/taxation_customs/resources/documents/customs/customs_duties/rules_origin/preferential/gsp_faq_en.pdf> accessed 6th november

Since this information is taken from a Bangla newspaper I have also provided a link which provides all the information regarding the GSP.Hope it wll help.

Thank you.